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An introduction to the growth of sub-broker franchise business model

Source: |Updated: Nov 26, 2021, 10:11 AM IST

A sub broker franchise business model is trending these days. If you are good with numbers, love interacting with people, and have convincing power, sky’s the limit for you. It is one of the most emerging business models with plenty of advantages and benefits to each of the stakeholders, including investors, franchise business owners, and the parental company as well.

Sub broker franchise means a person or firm who wishes to join hands with a reputed stock broking company and open its office under the name of the parental company in their city or at specific locations and provide all essential stock broking services to stock trading investors and traders.

Every franchise has to get itself registered with the SEBI first and they have to follow exactly the same procedure that the broker follows at its head office. The franchise owner gets commission based on the number of DEMAT accounts opened by it and the total turnover generated in a particular year.

Benefits of Sub Broker Franchise Business Model

  • Gets brokerage and fees from clients on every valid DEMAT transaction.
  • Provide PMS, advisory and other consultancy services and grow your business even more.
  • You get to receive lion’s share on each transaction and pay a very little amount to the franchisor as license fee or membership charges.
  • Franchisee is better able to tap the potential of his local area because he knows in and out of it.
  • As a franchise, you can even inculcate the concept of savings and investment in the minds of your neighbour and small investors.

Did you know? In a country with over 1.4-billion plus people, only very few companies have been able to establish themselves as registered stockbrokers. The process of getting a license to work as a SEBI-registered stock broker is very complicated and tricky. It requires a huge amount of paperwork, documentation process, legal processes, a state-of-the-art infrastructure and huge capital to start your broking business.

Some of the popular Stock Brokers in India are India Infoline, Motilal Oswals, Sharekhan, ICICI Direct, Kotwal Securities, SBI Capital and many more.

These days, many entrepreneurs opt for the other route. Instead of starting their own Stockbroking firm, they step into the shoes of a sub-broker, which is far more feasible and quick. Under the sub-broker franchise model, you get all necessary resources and other facilities provided to you by the broker while you get to grow your business and pocket hefty amounts of commission and profits as well.

Growth Prospects of an IIFL Sub-Broker Franchise

India Infoline, a popular stock broking company, registered with SEBI, was founded in 1995, introduced sub-broking franchise (business partnership) model in 2003.

As a franchise, you can develop your business, hire new talents, and also be able to sell all financial products launched by India Infoline. IIFL has over 5000 business partners and associates with a strong support of over four-million active customers.

IIFL also has its huge presence across 900 cities in India and abroad. IIFL has its international branches located in Mauritius, London, New York, Dubai, Singapore, Hong Kong, and Geneva.

The Conclusion

The responsibility of a sub-broker is huge, but it also holds huge potential to get aptly rewarded. As a sub-broker, you have to be always on your toes. Your responsibility doesn’t end by just opening a customer’s account. You have to take care of their concerns and needs. Also, you must provide necessary advisory functions to them as and whenever they need it.

Investment is always subjected to market risks, and is the subject matter of solicitation. As a sub-broker, you have to ignite passion in an investor’s mind to invest in stock markets and get their DEMAT account opened with you.



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Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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